- Michigan has some of the strongest earnings in the nation, with a share of federally insured credit unions with positive year-to-date net income being highest in the state.
- The state has avoided significant challenges, allowing it to maintain steady growth and positive earnings.
- Michigan credit unions are driven by seasoned executives and a solid statewide economy.
The National Credit Union Administration (NCUA) recently reported a 3.6% year-over-year decline in net income across the industry, to $14.4 billion in 2024. However, Michigan’s federally insured credit unions were able to maintain their positive earnings, with a share of 95% in the fourth quarter.
- DFCU Financial, a $6.7 billion-asset credit union based in Dearborn, saw a 12% decrease in net income to $42.9 million in 2024.
- Gerber Federal Credit Union, a $238.8 million-asset credit union in Fremont, reported a 14% decrease in net income to $1.2 million in 2024.
- PFCU Credit Union, an $817.1 million-asset credit union in Portland, saw a 43% increase in net income to $5.3 million in 2024.
The NCUA’s map review revealed that Maine had the highest share of federally insured credit unions with positive year-to-date net income, at 98%. Michigan followed closely, with a share of 95%.
The Michigan credit union market is characterized by a steady and progressive state credit union act, making it easy for anyone to become a member. As a result, 60% of the Michigan population are credit union members.
“While Michigan is not a high-growth market, the conditions have been steady. At this point, the state has avoided any significant challenge that would have impacted the area in any extreme manner.”
— Ryan Goldberg, President and CEO of DFCU Financial
| Key Factors | Discussion |
|---|---|
| Strong Business Growth | Residential lending, home equity lending, commercial lending, and wealth management all exceeded internal targets for DFCU Financial. |
| Seasoned Executives | Michigan has seasoned executives throughout the state who know what they are doing, according to Gerber Federal Credit Union’s President and CEO. |
| Solid State Economy | The statewide economy in Michigan has been solid, contributing to the positive earnings of credit unions. |
| Lower Expenses | Gerber Federal Credit Union has not filled open positions as quickly as anticipated, leading to budget savings in compensation and benefits. |
According to John Buckley Jr., President and CEO of Gerber Federal Credit Union, Michigan’s strong business growth and seasoned executives have contributed to the positive earnings of credit unions.
“We are waiting to see what happens along with the rest of the country. Loan demand has been slacking off as of late, but overall gross income is flat to projections.”
— John Buckley Jr., President and CEO of Gerber Federal Credit Union
Brian Waldron, President and CEO of Dort Financial Credit Union, highlights the progressive state credit union act and the value that credit unions can provide to Michigan citizens.
“Michigan has a progressive state credit union act that makes it easy for anyone to be a credit union member. And the citizens of Michigan understand the value credit unions can provide.”
“60% of the Michigan population are credit union members.”
Dort Financial has found managing expenses via vendor relationships to be an effective strategy for controlling operating expenses.
“We continue to see strong demand for commercial and consumer secured autos as well as mortgages,”
— Brian Waldron, President and CEO of Dort Financial Credit Union
Michele Makley, President and CEO of PFCU Credit Union, attributes the strong earnings of Michigan credit unions to diversifying their loan portfolios and maximizing income.
“This strategy ensures continued interest income even when certain lending areas slow down.”
— Michele Makley, President and CEO of PFCU Credit Union
PFCU is also focused on attracting potential members and enhancing their financial journey.
“Membership growth is another strategic initiative, and PFCU is focused on attracting potential members both in-person and online.
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